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Joint shipping plan to fight fiscal crisis
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The China Shipping (Group) Co and Beijing-based steel maker Shougang Group have agreed to form a joint shipping venture in response to the volatile economic climate.

The two companies will initially introduce two cargo ships, each with a capacity of between 15,000 and 20,000 tons, into the new venture to carry steel products and other goods along China's coasts and Southeast Asia for Shougang and other third-party customers.

The two companies are due to sign an agreement today in Shanghai, where China Shipping is based.

The shareholding structure and investment figures for the new venture were not immediately available.

The deal is on top of an existing strategic partnership between the companies. China is encouraging state-owned companies with business relationships to strengthen cooperation.

The ongoing financial turmoil is posing challenges for shipping lines with a drop in cargo throughput and rates.

Shougang, one of China's leading mills, is building a major new plant in Caofeidian in Hebei Province.

(Shanghai Daily January 8, 2009)

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